Yesterday key markets in America where celebrating Labor Day and the whole session was bit cranky, but should give end to dull and boring summer period on the markets. We hope that volatility will come back and something begin to happen.
We want to invite you to our daily Price Action setups preview. You will find four currency pairs in it: EUR/AUD, GBP/JPY, NZD/JPY and XAU/USD.
EUR/AUD
Cross rebounded from key support yesterday, forming small pin bar candle on the daily chart. Taking into account that it is a really strong level we should consider long positioning. There are three ways to trade this signal:
- Purchase after breaking above maximum, SL below minimum,
- Purchas after breaking above maximum, SL below 50% retracement of a candle (better RR ratio than in the first case),
- Buy limit at 50% retracement of a candle, SL below minimum. Better RR ratio than in the first case, and safer SL than in the second one. But there is still a risk that market will not correct the price and we will be left without a position in developing trend. Personally, I prefer this method – so I activate buy limit order at 50% retracement of this candle.
GBP/JPY
British pound to Japanese yen clearly rebounded above yesterday resistance, which now should act as a support. If price falls to this level, we should look for Price Action purchase signals and open long positions – which are following the recent momentum.
NZD/JPY
Another pair with yen, but it looks slightly different. Price reached resistance area and if sell signal shows we may consider short positioning. It is very strong level, which stopped price (on the D1) many times in the past.
XAU/USD
Gold just rebounded from important support level, but now it is approaching it once again. After potential rebound and buy signal forming it will be a good occasion for playing long.
